New to being a landlord - what haven't I thought about/considered?

[Anonymous]

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Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Nope. The opposite. Which is why the vast majority of any kind of landlord (small or corporate) requires a small application fee.

No, this is a literal red flag for scams. Don't pay fees to sketchy landlords.

No. The application + fee happens after a potential tenant sees the place and meets either the landlord or their representation. An application fee is so much the norm that DC has specific statutory provisions on how much a landlord can charge for one. A typical fee is about $30-$50, and it's a huge red flag for any landlord if someone cannot come up with that amount.

There are obviously tons of real estate scams, which is a separate issue. No one should ever send cash to a person they've never met for a place they haven't seen-- particularly if the fee is something crazy like $500.

But overall, a fairly small application fee is the norm, and has been for decades-- for good reason.

Virtually every rental platform (like apartments.com, zillow etc.) charges a fee if you want to move forward with the rental application. I advertise my rental on zillow and get plenty of applications through that. I don't see any of that money, applicants pay to the platform to run background and evictions checks. It's not like you're giving me a $20 bill!

SO sketchy!

[Anonymous]

We've been renting out our first house for 9 years now, and have had 3 tenants so far. The first and current one have been great, the one in the middle was a PITA, and when it came time for them to move out, we realized that they were just this side of hoarders. Still, there really wasn't a whole lot that needed to be done, other than repainting the house (Lord knows how there are dirty hand prints on the CEILING). All three tenants have been military, with good credit history, and we have never had any issues with collecting rent. I use a realtor for getting the rental process taken care of, and that has worked out pretty well so far.

[Anonymous]

My parents are landlords and have a portfolio of rental properties they've managed themselves for over 50 years. They've seen everything. Be prepared to be all up in your tenants' lives because they will tell you everything. They'll also break everything and leave the mess for you to clean up. And sometimes they die and you have to deal with it.
Maybe you'll be lucky or...

[Anonymous]

I’m a re investor and we own and operate apartments. With few exceptions I would not entertain owning/managing a single rental or a small portfolio of single family rentals. A single rental is never going to make a substantial amount of money and is very susceptible to vacancy loss and outsized maintenance expenses. 2 ton hvac units cost $6.5k+ to replace these days - I’ve replaced several this summer - how many months of “profit” is that going to wipe out when it needs to be replaced? How is the roof looking? The parking area? The pipes?

[Anonymous]

Anonymous wrote:I’m a re investor and we own and operate apartments. With few exceptions I would not entertain owning/managing a single rental or a small portfolio of single family rentals. A single rental is never going to make a substantial amount of money and is very susceptible to vacancy loss and outsized maintenance expenses. 2 ton hvac units cost $6.5k+ to replace these days - I’ve replaced several this summer - how many months of “profit” is that going to wipe out when it needs to be replaced? How is the roof looking? The parking area? The pipes?

All of this is written off to reduce tax, no?

[Anonymous]

You may need a small business license. It might be worth talking with a real estate agent to help you get the place ready, walk you through all of the things you might miss and the liabilities you would have. Plus they can also help you find and screen (according to your state laws) a tenant for you.

[Anonymous]

I've had rentals in DC for 20 years - and I've never one time regretted it. Have there been problems? Yes. Have there been cranky tenants and big repair bills? Yes. Have I been able to offer great property and reasonable rates for my residents? Yes. We need property in the city that is owned by small landlords and managed well. I keep my rents below market - I'm responsive to resident needs and treat people with respect - not like they are the enemy. The reality is - more people will be renters - the same folks that join these threads won't be able to buy like we once did - because of rates - uncertainty in the job market - and the price of housing. That means we need good rental owners offering great spaces. Particularly houses or row houses.

Get a property management company - and set reasonable expectations (for yourself). You might hate the fee they charge - you might ask "what do we pay them for." You pay them to make sure you're following the law, collect rent and deposits according to the law - track requirements and regulations for you and make sure you comply with fair housing. What does that mean? You're not looking at someone's social media to learn about them. When things go wrong - your manager hears about it and handles it. That's the middle of the night stuff - the day your resident has a puppy they want to adopt (just allow the dogs - houses are fixable - people with dogs stay longer). When the AC goes out - and it does - your manager tells the resident to replace the air filter - so you don't have to. And gets it fixed. Don't been mad when you have to make repairs. It's just part of the equation and can help offset taxes. When you pay your manager the fees are also tax deductible. Along with all the other expenses you have on the property.

For the application fee haters - screening residents is expensive - and delicate. You have to pay a service for that. Plus - it's standard. It's not unethical - it's just business.

Also - for the folks scaring people who are considering renting - consider some people might not have a choice. They can't sell their homes without coming to the table with cash (particularly true of the folks with condos). It's nicer to be nice about it and tell them how to have a good experience instead of telling them their life is going to be ruined. The vast majority of people have a fine experience - they aren't here on DCUM talking about it because - well - why would they be here talking about it. They are in the political thread or the menopause thread, lol.

[Anonymous]

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

Check references and credit. Check your insurance.